July 2014

US Treasury yields poised for rally

US Treasury yields look set to rally going forward but German yields continue to struggle, says Chris Williams at Societe Generale. For the US 10-year, 2.69 needs to be breached for further gains but for the 10-yr Bund low volume and the failure of recent rallies means the all-time low of 1.12 may be tested.

S&P500 in ‘bubble’ scenario

Bearish divergence in sentiment and momentum for the S&P500 that now exists is only seen in bubble markets, says Walter Zimmermann at United-ICAP. He also gives his views for the Shanghai index, US Treasuries, FX, and a wide range of commodity markets.

GBPUSD faces resistance to further gains

Cable faces resistance to further gains despite touching a year high at 1.7179 last week, say analysts at ADS Securities. A short-term overbought scenario now exists that could see the pound test 1.7000/15. On the upside, a move through the 1.7177 would still see gains limited in the near-term.

Gold to move to $1100 before rally

A triangle breakout will bring a downward move to $1100 for gold before a countertrend rally is seen, says Tarun Dang at Trendwise. A decline will also form a 5th wave of an Elliott Wave pattern thereby reinforcing the conviction of a possible downward break.